Nifty consolidated yesterday, but the bearish undertone has risen. Bears set to rule.
As discussed yesterday, we saw Bears tightening the screw despite several attempts by the Bulls to recover the 200DMA. The Nifty opened with a negative gap of 17 points. Then filled the gap and got sold off to reach our identified support zone at 5739 and bounced back to the 200DMA level at 5793, before getting sold off again to close at 5760 with a loss of 29 points. We did not trade yesterday as we were away from the terminals.
1) The Elder Ray readings : Bull Power reduces from -74 to -123 Bear Power rises from -162 to -178 indicating that the Bears are now getting stronger while the Bulls are out of their safe zone. For today, the Bulls need to overcome the levels of 5895 to recover their lost grounds where as the Bears need to breach the levels of 5710 to maintain their downwards momentum.
2) The stochastics continue to be in the oversold zone confirming the down trend.
3) The Nifty continues to close below all its key EMAs and also below all its key DMAs.
4) In the above chart, the volumes remain high with the fall in the Nifty suggesting that the down move may continue. The MACD has turned negative with the histogram also growing in the negative. The ADX is suggesting a rising momentum favoring the Bears. The Parabolic SAR continues with its sell signal with a SL of 5965.
5) Considering the above, our trading plan for the day is as under.
a) Around 5700 we will open fresh long positions with a SL of 5685 and a target of 5760. We will add to these long positions only above 5830.
b) Around 5800 we will open fresh short positions with a SL of 5830 and a target of 5700. We will add to these short positions only below 5685.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
As discussed yesterday, we saw Bears tightening the screw despite several attempts by the Bulls to recover the 200DMA. The Nifty opened with a negative gap of 17 points. Then filled the gap and got sold off to reach our identified support zone at 5739 and bounced back to the 200DMA level at 5793, before getting sold off again to close at 5760 with a loss of 29 points. We did not trade yesterday as we were away from the terminals.
1) The Elder Ray readings : Bull Power reduces from -74 to -123 Bear Power rises from -162 to -178 indicating that the Bears are now getting stronger while the Bulls are out of their safe zone. For today, the Bulls need to overcome the levels of 5895 to recover their lost grounds where as the Bears need to breach the levels of 5710 to maintain their downwards momentum.
2) The stochastics continue to be in the oversold zone confirming the down trend.
3) The Nifty continues to close below all its key EMAs and also below all its key DMAs.
4) In the above chart, the volumes remain high with the fall in the Nifty suggesting that the down move may continue. The MACD has turned negative with the histogram also growing in the negative. The ADX is suggesting a rising momentum favoring the Bears. The Parabolic SAR continues with its sell signal with a SL of 5965.
5) Considering the above, our trading plan for the day is as under.
a) Around 5700 we will open fresh long positions with a SL of 5685 and a target of 5760. We will add to these long positions only above 5830.
b) Around 5800 we will open fresh short positions with a SL of 5830 and a target of 5700. We will add to these short positions only below 5685.
Happy Trading !!!
Also visit Just Nifty and the Nifty Range blogs.
For cash market recommendations see our Daily Pre Market calls on NSE
Nifty opens right into our buy range. Trading plan(a) triggered. Opened long position at 5700 with a SL of 5685
ReplyDeleteTSL hit at 5715. Booked out with a profit of 15 points
ReplyDeletePart b of trading plan(b) triggered.
ReplyDeleteOpened fresh short position at 5688 with SL of 5718
seems index is being sold at every small rise...
ReplyDeleteyet the ranged trade continues
Squared off intraday shorts at 5692 with a minor loss of 5 points.
ReplyDelete